In general, people will pay taxes throughout the year; whether they are for salary withholding, quarterly estimated tax payments, or a combination of both. A recent study found that 70% of the American taxpayers over withhold their taxes every year, which typically results in a refund. The average refund in 2021 was more than $2,700.
How to Pay your Taxes:
The IRS has made paying your taxes convenient and easy - you may pay your taxes online, by phone, or using their new app IRS2Go. You can schedule payments for future dates, which can be useful during filing season, for payment plan payments, or for estimated tax payments.
The IRS has also advanced their website capabilities; taxpayers may create an account and log into their IRS.gov/account to view the amount they owe, review their payment plan details and options, see their payment history (up to 5 years), note any scheduled or pending payments, and find key information from their most recent tax return.
Tax Withholding Estimator:
The IRS provides taxpayers the ability to estimate their tax withholdings utilizing the Tax Estimating Tool which allows you to know the amount of tax withheld. This is particularly important for those who have been given an unexpected surprise tax bill, received a penalty when they filed their yearly tax return or those whose jobs or tax circumstances have changed during the year.
The tool offers workers, as well as retirees, self-employed individuals, and other taxpayers, a user-friendly, step-by-step tool for effectively tailoring the amount of income tax they have withheld from wages and pension payments.
Strategic Financial Reporting Inc offers tax consultations and accounting services. Book your appointment today with one of our knowledgeable and high-quality accountants by clicking the following link: Book An Appointment.
** Reference Link - IRS.Gov
Comments